DRC 21- 1 - Functional Management – I

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DRC 21- Functional Management – I 1. Explain the different segments of marketing mix. Marketing Mix – Introduction It is a framework which helps to structure the approach to each market. The mix is a bundle of variables which are offered to the customer. These include the product or service itself (its advantages); its availability (the place where and when it is available, delivered or distributed); its image (the way it is promoted) and, of course, the price which should be charged. These are some of the ingredients which a marketing manager must mix together when optimising a limited amount of resources. What is the best mix? A marketing manager has to juggle resources and decide on the best marketing mix. Should money be spent or forfeited on: reduced prices? Improved products? New delivery trucks? Or maybe invest all your money in a high risk TV advertising campaign? Did you recognise the 4 Ps just there? In 1960 Jerome McCarthey presented the 4 Ps to the world. Since then marketing managers around the world have become familiar with them. Can you recall them?

Transcript of DRC 21- 1 - Functional Management – I

Page 1: DRC 21- 1 - Functional Management – I

DRC 21- Functional Management – I

1. Explain the different segments of marketing mix.

Marketing Mix – Introduction

It is a framework which helps to structure the approach to each market. The mix is a

bundle of variables which are offered to the customer. These include the product or service itself

(its advantages); its availability (the place where and when it is available, delivered or

distributed); its image (the way it is promoted) and, of course, the price which should be charged.

These are some of the ingredients which a marketing manager must mix together when

optimising a limited amount of resources.

What is the best mix? A marketing manager has to juggle resources and decide on the

best marketing mix. Should money be spent or forfeited on: reduced prices? Improved products?

New delivery trucks? Or maybe invest all your money in a high risk TV advertising campaign?

Did you recognise the 4 Ps just there? In 1960 Jerome McCarthey presented the 4 Ps to the

world. Since then marketing managers around the world have become familiar with them. Can

you recall them?

In addition to the 4 Ps, there are other approaches to the mix. These are explored under

'Different Approaches' subtopic as shown in the title map. Let's look at each of the 4 Ps briefly.

Product - this means the product's (or service's) quality, the functions, the features and benefits of

its design plus packaging, guarantees and level of after-sales service. Choices can be made about

any of these aspects. Price includes recommended prices to end-user customers, distributor's

trade prices, cash discounts, bulk discounts, terms of credit.

Place means where and when the customer buys and consumes the product or service.

Place is sometimes referred to as the marketing channels, physical distribution, logistics or

location. Promotion means the promotions mix or the communications mix. This mix includes

advertising, sales promotions, publicity, direct mail, exhibitions, display, packaging, selling and

even word-of-mouth. The choice of target market affects the mix. Here is Professor Philip

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Kotler: "For example, in India you sell one cigarette at a time, not a package. So there is a lot of

localisation. The biggest mistake companies make often, is to assume that the way they sell a

product in their own country is the way to put it into another country."

Philip Kotler

So the mix must adapt itself to the market. The 4 Ps, however, is just one approach to the

marketing mix. You can explore some other approaches in the subtopic called 'Different

Approaches'.

Different Approaches

The 4 Ps is just one approach to the marketing mix. There are many other approaches.

American author, Philip Kotler prefers the 4 Cs. He suggests that the 4 Ps are a seller's mix or

sales orientated approach and it therefore should be replaced by the 4 Cs which are more

customer orientated, or marketing orientated.

You can probably guess what the 4 Cs stand for.......

Product = Customer Benefits

Price = Cost to Customer

Place = Convenience

Promotion = Communications

Going back to the 4 Ps, some feel this approach to the marketing mix misses the most

important part of marketing; the centre of the marketing universe is omitted. What do you think

is the centre of the marketing universe? The 5th P is the People: customers and employees.

Customers are at the centre of the marketing universe.

Now lets move on to the 7 Ps. Although the 4 Ps can be used for both products and

services some feel that the 4 Ps works better for products than it does for services. Perhaps you

agree? American, academics Booms &Bitner felt that the 7 Ps are more appropriate for the

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service sector such as hotels or transport companies. Four of the 7 Ps are the same. Product,

Price, Place and Promotion; can you guess what the others might be?

People, Process and Physical environment

Each of these Ps affects what the customer is offered. People are employees. Process

means the production and delivery of the service. Physical Environment means the interior and

exterior of the buildings. In 1961 Albert Frey suggested that all the marketing mix variables

could be categorised into just two groups:

The Offering consisted of Product, Packaging, Service, Brand and Price, while the

Methods and Tools comprised of Distribution Channels, Personal Selling, Advertising and Sales

Promotion. So there are several different ways of categorising the mix. There are also several

different ways of mixing the mix. Should advertising be increased, prices slashed, deliveries

reduced and products upgraded? Or the other way around? You can explore this in the section

called 'Mixing the Mix'.

Mixing the Mix

There is no one, single, perfect marketing mix. Some mixes are, however, better than

others. The marketing mix has an infinite amount of combinations or mixes. The 'same' product

can have extremely different mixes for different markets around the world.

Ranges of prices, distribution options, product modifications, promotional strategies can all be

mixed in different ways. They should however, fit together to consolidate a single desired

positioning in a particular market segment.

The mix should not pull in different directions; a high price for low quality goods does

not make sense in the long term. Repeat business is important in the world of marketing.

Equally, low quality, discount priced products will find distribution in a luxury up-market store

difficult to achieve.

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Here is a new product. Market it. Mix the mix. A friend's mother has developed a watch

which has a videophone and magnifying glass for viewing. A combination of miniaturisation and

micro chips means the video watch can be produced for as little as £2.00 per unit. She has asked

you to help her to draw up an outline marketing mix. Consider two different mixes. What would

you do? The first question to ask would be: 'what is the market?' What benefits does this product

deliver? Who might enjoy these benefits? Next, considering various segments and possible target

markets would also help. And a clear view on the positioning also helps. An understanding of

what resources the company has would be vital.

One option would be to recommend a retail price for the video phone watch at £1,000.

This could be distributed through luxury stores like Harrods or Neiman and Marcus, promoting it

with elaborate in-store displays (merchandising) supported with a limited mail shot and PR

campaign. Now consider another option. This time change the marketing mix radically. Reduce

the price and sell in packs of two through discount warehouses supported by a national TV

advertising campaign.

Each ingredient in the mix can vary enormously. For example, the watch can be made out

of plastic or platinum. It can have a lifetime guarantee or become a disposable product. It can

have lots of extras such as diamond studded leather straps, silk wrapping, guarantees and so on.

On the other hand, it can have no added costs and no added extras - just the basic video watch.

These are decisions which the marketing manager has to make after careful analysis of the

situation, the market, its needs, its sectors, the ideal positioning, the resources within the

company.

So is there a single, perfect marketing mix? No, but some mixes are obviously better than

others. Finally, some countries require different mixes. Some segments require different mixes

within the same country. The mix can change according to market requirements which in

themselves change over time. The ever-changing mix is discussed in a separate subtopic.

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The Ever Changing Mix

An excellent marketing mix in one period may not be as effective in another period. The

marketing mix changes over time. Partly because markets change, new sectors evolve, trends

develop, attitudes change, different ideal positioning emerge, technology moves on, new

products arrive, different distribution channels appear.

Just look at the personal computer, or PC, market. Today's PCs are better products, have

much lower prices and different methods of distribution compared with ten years ago. Today,

thousands of people buy PCs through mail order. Ten years ago this would never have been the

case.

The Marketing Mix has to change to meet new market conditions. Here is an example of

how different elements of the marketing mix dominated the retail petrol market in the UK over a

period of time. In the early 1960s Product Performance - miles per gallon, reliability were very

important. Then the marketing emphasis switched to promotions with the Green Shield Stamps

war in the late 1960s. Physical distribution and sourcing of supplies became vital during the first

oil crisis in 1973.

This was followed by a price war in 1974, which was in turn followed by supply and

distribution problems during the second oil crisis in 1979. The early '80s saw location and design

of new retail sites as the key to competitive advantage. This was followed by the mid 1980s sales

promotions war as petrol retailers competed to give away instant gifts, tokens, scratch cards.

These sales promotions were supported by large advertising budgets. So now the advertising

promoted the sales promotions rather than the product itself. Some advertising campaigns even

advertised the fact that their competitors had inferior sales promotions. The marketing mix can

change over time.

It can also change over distance. This is particularly true in international markets where

certain approaches to advertising and promotions are acceptable in some countries but not in

others; or where the distribution network is restricted; or where the price structure is totally

different. The optimum mix is influenced by the company's long term policy on repeat sales, its

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positioning strategy, the target market selection, the firm's resources, levels of competition and

the ability, or willingness, to change the mix according to a particular market's requirements. The

ideal mix should support the ideal positioning in the most attractive target markets.

Product and the Marketing Mix

Over a hundred years ago Ralph Waldo Emerson suggested that "If a man can write a

better book, preach a better sermon, or make a better mousetrap than his neighbour, though he

builds his house in the woods the world will make a beaten path to his door." This is certainly

not true today. Many excellent products fail because no one knows about them, or they are

wrongly positioned, or they're not available when people want them, or they're too expensive for

the chosen target market.

Other excellent products fail because a competitor's lower priced and inferior product is

widely available before you even get to launch your product on the market place. Going back to

the Emerson's better mousetrap, ironically the best product is not always the best option. For

example, the product might be so good that it costs too much to produce and therefore the best

product might just put you out of business. Do customers really want that extra feature? Can you

afford it? Can they afford it? Can competition copy it? Whatever the decision, the final

combination of the core product, tangible product and augmented product along with price,

promotion and distribution need to work together if a product is to be successful.. Better

mousetraps are often beaten by poorer mousetraps. It happens all the time.

Competitors constantly juggle their marketing mixes to maximise their product sales.

Speed to market; blocked distribution channels; clever pricing strategies; powerful promotions;

are all used by competitors to win and keep market share. The better mousetrap also needs to be

part of a coherent, fully integrated marketing mix. The distribution has to get the product to

where the target customer can buy it when they want it. The prices have to reflect the desired

quality image while simultaneously matchingwhat customers can afford. Finally, customers need

to know about the product - it needs to be promoted in the right way. Each element of the

marketing mix should support the product's positioning. The product, its price, its distribution

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channels and of course the promotion should all reinforce the same message. Without a coherent,

fully integrated mix even the best product in the world will fail.

MARKETING MIX THROUGH EFFECTIVE MARKET SEGMENTATION

The division of a market into different homogeneous groups of consumers is known as

market segmentation. Rather than offer the same marketing mix to vastly different customers,

market segmentation makes it possible for firms to tailor the marketing mix for specific target

markets, thus better satisfying customer needs. Not all elements of the marketing mix are

necessarily changed from one segment to the next. For example, in some cases only the

promotional campaigns would differ.

A market segment should be:

measurable

accessible by communication and distribution channels

different in its response to a marketing mix

durable (not changing too quickly)

substantial enough to be profitable

A market can be segmented by various bases, and industrial markets are segmented

somewhat differently from consumer markets, as described below. In microenterprise finance,

however, the line between business and consumer clients is thin or non-existent because most

clients do not clearly distinguish business and household economies. The following client

characteristics are typically used to distinguish market segments:

Geographic location;

Demographics;

Behavioral aspects;

Business/household size; and,

Life cycle

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a. Geographic Location.

To separate markets in geographic segments necessitates finding out the natural borders

that the people within the market accept. For example, if people from one village do not get

along with those from a neighboring village, the two villages should not be grouped together as

one segment.

b. Demographics.

Demographic segmentation uses characteristics such as age, number of persons in a

household, education level and housing conditions to determine market segments.

c. Behavioral Aspects.

Markets can be segmented on the basis of product-related behavior, such as the benefits

desired from a product, or the rate of use of a product. For financial institutions, a widely used

and measurable behavioral rate is the cross selling rate. When a customer has a loan contract,

two savings accounts, a checking account and a credit card with one financial institution, their

cross-selling rate is five. In Europe and the United States, the cross-selling rate is frequently used

to differentiate between customers.

d. Business/Household Size.

Business and household size are important determinants of market segmentation. In order

to arrive at per capita income, income is normally divided by the number of persons living in a

household. This can differ across cultural settings.

e. Life cycle.

Financial needs differ across the life cycle of a client. Accordingly, the stages of the life

cycle are good entry points for market segmentation. In Europe and the United States, the stages

in the box below are typically applied. These could need substantial adjustment in other country

contexts.

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Consumer Market Segmentation

A basis for segmentation is a factor that varies among groups within a market, but that is

consistent within groups. One can identify four primary bases on which to segment a consumer

market:

Geographic segmentation

It is based on regional variables such as region, climate, population density, and

population growth rate.

Demographic segmentation

It is based on variables such as age, gender, ethnicity, education, occupation, income, and

family status.

Psychographic segmentation

It is based on variables such as values, attitudes, and lifestyle.

Behavioral segmentation

It is based on variables such as usage rate and patterns, price sensitivity, brand loyalty,

and benefits sought.

The optimal bases on which to segment the market depend on the particular situation and

are determined by marketing research, market trends, and managerial judgment.

Business Market Segmentation

While many of the consumer market segmentation bases can be applied to businesses and

organizations, the different nature of business markets often leads to segmentation on the

following bases:

Geographic segmentation - based on regional variables such as customer concentration,

regional industrial growth rate, and international macroeconomic factors.

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Customer type - based on factors such as the size of the organization, its industry,

position in the value chain, etc.

Buyer behavior - based on factors such as loyalty to suppliers, usage patterns, and order

size.

Profiling the Segments

The identified market segments are summarized by profiles, often given a descriptive

name. From these profiles, the attractiveness of each segment can be evaluated and a target

market segment selected.

CONCLUSION

One of the fundamental principles of marketing is the concept of market segmentation

and targeting. So much so that it sometimes referred to as one of the potentially most creative

areas of marketing. All knows that no one company can satisfy the needs of all of these potential

customers, then how to segment the market and target the market is really a big question to all

the marketers. Whether to target all the segments or one particular segment, then what will be the

targeting strategy for each segment. The company has choice to choose from various

concentrated strategies or a single undifferentiated market targeting strategy.

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2. Explain the selection process followed in an industry of your choice.

RECRUITMENT AND SELECTION

INTRODUCTION

The human resources are the most important assets of an organization. The success or

failure of an organization is largely dependent on the caliber of the people working therein.

Without positive and creative contributions from people, organizations cannot progress and

prosper. In order to achieve the goals or the activities of an organization, therefore, they need to

recruit people with requisite skills, qualifications and experience. While doing so, they have to

keep the present as well as the future requirements of the organization in mind.

Recruitment is distinct from Employment and Selection. Once the required number and

kind of human resources are determined, the management has to find the places where the

required human resources are/will be available and also find the means of attracting them

towards the organization before selecting suitable candidates for jobs. All this process is

generally known as recruitment. Some people use the term “Recruitment” for employment.

These two are not one and the same. Recruitment is only one of the steps in the entire

employment process. Some others use the term recruitment for selection. These are not the same

either. Technically speaking, the function of recruitment precedes the selection function and it

includes only finding, developing the sources of prospective employees and attracting them to

apply for jobs in an organization, whereas the selection is the process of finding out the most

suitable candidate to the job out of the candidates attracted (i.e., recruited).Formal definition of

recruitment would give clear cut idea about the function of recruitment.

DEFINITIONS

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Recruitment is defined as, “a process to discover the sources of manpower to meet the

requirements of the staffing schedule and to employ effective measures for attracting that

manpower in adequate numbers to facilitate effective selection of an efficient workforce.” Edwin

B. Flippo defined recruitment as “the process of searching for prospective employees and

stimulating them to apply for jobs in the organization.” Recruitment is a ‘linking function’-

joining together those with jobs to fill and those seeking jobs. It is a ‘joining process’ in that it

tries to bring together job seekers and employer with a view to encourage the former to apply for

a job with the latter.

In order to attract people for the jobs, the organization must communicate the position in

such a way that job seekers respond. To be cost effective, the recruitment process should attract

qualified applicants and provide enough information for unqualified persons to self-select

themselves out.

Thus, the recruitment process begins when new recruits are sought and ends when their

applications are submitted. The result is a pool of applicants from which new employees are

selected.

PURPOSES AND IMPORTANCE

The general purpose of recruitment is to provide a pool of potentially qualified job

candidates. Specifically, the purposes are to:

Determine the present and future requirements of the organization in conjunction with its

personnel-planning and job-analysis activities.

Increase the pool of job candidates at minimum cost.

Help increase the success rate of the selection process by reducing the number of visibly,

under qualified or overqualified job applicants.

Help reduce the probability that job applicants, once recruited and selected, will leave the

organization only after a short period of time.

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Begin identifying and preparing potential job applicants who will be appropriate

candidates.

Induct outsiders with a new perspective to lead the company.

Infuse fresh blood at all levels of the organization.

Develop an organizational culture that attracts competent people to the company.

Search or head hunt/head pouch people whose skills fit the company’s values.

Devise methodologies for assessing psychological traits.

Search for talent globally and not just within the company.

Design entry pay that competes on quality but not on quantum.

Anticipate and find people for positions that do not exist yet.

Increase organizational and individual effectiveness in the short term and long term.

Evaluate the effectiveness of various recruiting techniques and sources for all types of job

applicants.

Recruitment represents the first contact that a company makes with potential employees. It is

through recruitment that many individuals will come to know a company, and eventually decide

whether they wish to work for it. A well-planned and well-managed recruiting effort will result

in high-quality applicants, whereas, a haphazard and piecemeal effort will result in mediocre

ones. High-quality employees cannot be selected when better candidates do not know of job

openings, are not interested in working for the company and do not apply. The recruitment

process should inform qualified individuals about employment opportunities, create a positive

image of the company, provide enough information about the jobs so that applicants can make

comparisons with their qualifications and interests, and generate enthusiasm among the best

candidates so that they will apply for the vacant positions.

The negative consequences of a poor recruitment process speak volumes about its role in an

organization. The failure to generate an adequate number of reasonably qualified applicants can

prove costly in several ways. It can greatly complicate the selection process and may result in

lowering of selection standards. The poor quality of selection means extra cost on training and

supervision. Furthermore, when recruitment fails to meet the organizational needs for talent, a

typical response is to raise entry-level pay scales. This can distort traditional wage and salary

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relationships in the organization, resulting in avoidable consequences. Thus, the effectiveness of

a recruitment process can play a major role in determining the resources that must be expended

on other HR activities and their ultimate success.

SUB-SYSTEMS OF RECRUITMENT

The recruitment process consists of the following four sub-functions:-

Finding out and developing the sources where the required number and kind of

employees will be available.

Developing suitable techniques to attract the desirable candidates.

Employing the techniques to attract candidates.

Stimulating as many candidates as possible and asking them to apply for jobs irrespective

of the number of candidates required.

Management has to attract more candidates in order to increase the selection ratio so that the

most suitable candidate can be selected out of the total candidates available. Recruitment is

positive as it aims at increasing the number of applicants and selection is somewhat negative as it

selects the suitable candidates in which process; the unsuitable candidates are automatically

eliminated. Though, the function of recruitment seems to be easy, a number of factors make

performance of recruitment a complex one.

FACTORS AFFECTING RECRUITMENT

The following are the 2 important factors affecting Recruitment:-

1) INTERNAL FACTORS

Recruiting policy

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Temporary and part-time employees

Recruitment of local citizens

Engagement of the company in HRP

Company’s size

Cost of recruitment

Company’s growth and expansion

2) EXTERNAL FACTORS

Supply and Demand factors

Unemployment Rate

Labour-market conditions

Political and legal considerations

Social factors

Economic factors

Technological factors

RECRUITMENT IN BHARTI AIRTEL

The following are the strategies of Bharti Airtel.

1. Employment Agencies

There are a number of private employment agencies like Ferguson Associates, ABC Consultants,

SB Billimoria, who register for employment and can furnish a list of suitable candidates when

sought by employers from their data bank. Generally, these agencies, these agencies also recruit

on behalf of the organisation without necessarily disclosing the identity of the organisation. They

go as far as short-listing the candidates for organisation but the final decision is taken by the

representatives of the organisation.

2. Advertisement

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It is the most widely used method for generating applications. Its reach is very wide. Different

mass media could be used to make people aware of the opportunities. There are special journals

and magazines that cater to different market segments and putting an advertisement in them may

generate a large number of relevant applications. However, in preparing and advertisement, lot of

care has to be taken to ensure that some self-selection among applicants takes place. In other

words, only qualified people should think of responding to advertisements.

3. Campus Recruitment

While campus recruitment is a common phenomenon in the West, in India it has made its mark

rather recently. Many organisations send their representatives every year to national institutes of

higher learning like Indian Institutes of Management Indian Institutes of Technology and similar

others. I In fact many institutes have regular placement offices which not only send out the

profiles of graduating students, but also help the visiting company representatives in

administrative details. The organisations have definite advantages through campus recruitment.

First, the cost is low; second, they can arrange interviews at short notice,; third, they can meet

the teaching faculty; fourth, it gives them an opportunity to ‘sell’ the organisation to a large

student body who would be graduating later, as well as establish a goodwill through

presentations and distribution of company material. One of the drawbacks of campus recruitment

for employing organisations is that they interview candidates who have similar experience and

education.

4. Deputation

Deputation refers to sending an employee to another orgnaisation for a short duration of two to

three years. Deputation is a pretty common method of recruitment in the public sector

organisations and government agencies in India. It also takes place in the private sector when an

employee is sent to another unit of the same group for some time. However, deputation in Indian

context is generally, seen with reference to public sector organisations and government agencies.

Deputation is useful because it provides ready expertise and the organisation does not have to

incur the initial cost of induction and training. Since the deputation period is generally limited to

two to three years, it is often a handicap.

5. Professional Association

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Very often, for certain professional and technical positions it may be useful to go to professional

associations (e.g. All India Management Association). An application routed through these

associations would, perhaps, be better in terms of qualification as some of these association

themselves do a preliminary screening. In India, this is not a very common practice and those

few that do provide this kind of service have not been able to generate a large number of

applications.

6. Word of Mouth

Sometimes it may be more economic, both in terms of time and money, to pass the word around

about the possible opening. This could be done either through individual employees or unions. It

often serves the purpose of keeping the union involved in recruitment and ensuring industrial

harmony.

7. Casual Applications

Often the organisation receives self- solicited applications seeking suitable opportunities. Many

organizations I keep a live file of such casual unsolicited applications and whenever a befitting

position opens, invite them to apply through formal channel. One major problem with this

method is that such people apply to a number of organizations, and when they are needed by the

organisation, either they are absorbed by other organizations or are not interested in the position.

8. Raiding

Raiding is a technical term used when employees working elsewhere are attracted to joint

organisations. The organisations are always on the lookout for qualified professionals, and are

willing to offer them a better deal if they make the switch. There are always some employees

who are professionally very competent, but dissatisfied with something or the other in the

organisation. They form the ‘easy’ group to attract. The other group is formed of those who are

equally competent but are quite satisfied with their present position. To attract them, the

organisation has to offer a very lucrative package of perquisites. Whatever may be the means

used to attract, often it is seen as an unethical practice and not openly talked about.

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THE TWO FACE OF SEARCHING AND SCREENING

Closed internal Recruitment System

Under a closed internal recruitment system, employees are not made aware of job

vacancies. The only people made aware of promotion or transfer opportunities are

those who oversee placement in the human resource department, line managers with

vacancies, and contacted employees. The way a vacancy is typically filled under a

closed system is shown below.

Open internal recruitment system

Under an open internal recruitment system, employees are made aware of job vacancies. Usually

this is accomplished by a job posting and bidding system.

Organisation

Activate search

Communicate job openings and attributes Applicant 600 Make inquiries

and apply

Activate search

Individual

Screen applicants

Reject

Continued interest

Potential hires

Continued interest

Screen opportunities

Reject

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An open system gives employees a chance to measure their qualifications against those required

for advancement. It helps minimize the possibility of supervisors selecting only their favourite

employees for promotion or transfer. Hidden talent s often uncovered.

An open system may, however, create unwanted competition among employees for limited

advancement opportunities. It is a very lengthy and time- consuming process to screen all

candidates and provide them with feedback. Employee morale may be decreased among those

who are not advanced.

Targeted system of internal recruitment

Under a targeted system, but open and closed steps are followed at the same time. Jobs are

posted, and the human resources department conducts a search outside the job posting system.

Both systems are used to cast as wide a net as possible. The large applicant pool is then narrowed

down by KSAOs. Seniority eligibility, demographics, and availability of applicants.

A targeted system has three advantages; a thorough search is conducted, people have equal

opportunity to apply for postings, and hidden talent is uncovered.

SCREENING

In the overall process of selection, screening comes after the recruitment is complete. Screening

is a process of reducing the number of applicants to a few who have better chances of selection

than those screened out. Screening is generally done on two counts- eligibility and suitability.

Eligibility is to see if the applicants fulfil the minimum qualifications stipulated n the recruitment

announcement. Those who do not qualify are straight away eliminated from the selection. It is

difficult to decide on the criteria suitability. One can choose only those with a high percentage of

marks, but that is not always a guarantee for good performance. A judgement has to be made

looking at the job specifications. In general, those distant from job specifications are screened

out in the first round itself. Screening can be done by using a variety of methods. Some of these

method are discussed below:

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1. Preliminary applications

On the basis of minimum information in a preliminary or self- prepared application, screening

could be done. Only those who qualify at this stage are sent a comprehensive application blank.

If this facility is not available, then the information provided in the comprehensive application

blank itself becomes the basis for screening.

2. Tests of Deselection

Many organisations in India are now using psychological tests to deselect a number of

applicants. If the number of applicants is large, higher cut- off scores are set to reduce the

number to a manageable size. These are generally tests of intelligence and environmental

awareness. In many academic institutions, banks, etc., this is a common practice. The cut- off

point is determined by a general formula of a number of vacancies multiplied by four. The idea is

to get four times the number of vacancies, call them for interviews, group discussions, or any

other subsequent methods of selection. Research has shown that 1:4 ratio for selection gives

enough margin for choice. Although this ratio is not always strictly adhered to , it is a common

practice.

3. Screening interviews

Another method of screening is to have a short duration interview with all the candidates and

then decide who should be asked for a comprehensive interview at a late date. This is a good

technique, provided the number is not large. Many companies in campus interviews use this

technique.

While screening does help to reduce large numbers to manageable proportions, it also has the

possibility of losing some applicants who could have performed well in the subsequent selection.

With more clear understanding of job description, however, this risk could be reduced.

SELECTION

Managing Recruitment and Selection System

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Selection is choosing a few from those who applied. Some selection are:

1. Application Banks

This is one of the most common methods used for collecting information from the applicants.

This provide the candidates first formal introduction to the company. Prior to receiving the

application, the company knows nothing about him/her. They generate data in uniform formats

and hence make it easy to make cross comparison of the applicants.They generate data that can

serve as abasis to initiate a dialogue in the interview. This may be true for both preliminary and

final interviews. Areas that need to be further explored are identified on the basis of blank also

provide leads for subsequent interviews.

2. Interview

Interview is one of the few situation where a candidate comes face-to-face with the

representatives of the organisation. It is, thus, seen as an interaction between the interviewer and

the applicant and a situation in which both participate. Tharp explains the rationale of the

interview process when he says, “Only through the interview process can a manager gather

sufficient data to be able to predict whether a candidate will be successful in the position for

which he or she is being considered.

3. Business Games

For positions where decision-making is the most important components, some techniques are

developed to assess the decision- making ability of the applicants. These are called business

games. Applicants for supervisory or managerial positions are put in a simulated exercise of

actual decision- making. A problem is provided to them along with all the necessary information

and constraints. The applicant is asked to make a decision and the quality of this decision is

judged by how well the applicant has processed the information provided to him. One example

of business games is the “in-basket” techniques.

4. Group Discussion

Another frequently used technique for the selection of supervisory and management staff and

particularly for management trainees in India is known as leaderless group discussion or just

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group discussion. Before the individual, face-to-face, interview takes place a group of applicants

ranging from six to ten are either provided a company situation or a topic on which they are

allowed some times to discuss among themselves. The discussion is preceded by a preparation

time which provides an opportunity to the applicants to think of the subject matter and evolve

strategy of making their contribution.

Physical Examination

This, as a method of selection, is most useful where physical strength is most important or where

physically handicapped are employed. Other than providing a sound, hygienic environment and

legally protecting the organization, there does not seem to be any other reason why physical

examination should be undertaken.

These are all the strategies of Bharti Airtel.